It is entitled Tri-State Petroleum v. Saber Energy, Inc. Tri-State admitted its breach but claimed that lost profits are an inappropriate measure of damages. Using IRAC, who wins

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Business

Ayla

12 October, 09:17

It is entitled Tri-State Petroleum v. Saber Energy, Inc. Tri-State admitted its breach but claimed that lost profits are an inappropriate measure of damages. Using IRAC, who wins

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Hallie Woods · Answer 1

Answer:Saber Energy wins by the award of damages for lost of profit by the court.

Explanation:

A contract is an agreement between two parties in which the terms of the contract can be enforced in the court of law. In a law of contract, there is an essential elements that made the contract valid which are offer, acceptance, consideration, intention to create legal relations, and so on.

In the case between Tri-state petroleum v saber Energy. Tri-state petroleum had a contract agreement to buy gasoline from saber Energy. However, As part of the terms of the contract, Tri-state included in the contract agreement a clause that allowed Tri-state to cancel the contract. Saber Energy does not agree with the clause included in the contract by Tri-state. Based on this, the judge in the case ruled that, the clause is not part of the contract, and that Tri-state is guilty of the breach of contract by virtue of their cancellation of the contract. The court however, awarded saber energy damages for lost profit. Using IRAC saber energy wins the case by the award of damages for lost of profit by the court because the contract involved the buying of gasoline.